Cynthia 

Sue Fang

Yen Jiang

Scripts
What is Deceptive Advertising?

Script: 

 
Deceptive advertising, or false advertising, is any type of advertising that is false, misleading,
or has the effect of deceiving consumers.
An ad can be deceptive in many aspects such as price of a product, quantity of a product, the
quality or standard of the item and other factors.
According to Nagler (1993), deceptive advertising is defined as a firm misrepresenting to the
consumer the attributes of the advertised product.
 

Types of Deceptive Advertising

A common form of false advertising involves misleading product descriptions, particularly
claims that a product has certain features or benefits that it does not, or it has a  higher quality
than it actually is such as:

 Using misleading terms,  like “organic,” “natural,” or “light”;

 Selling unremarkable products using false claims such as “scientifically proven” or
“guaranteed result”
 Use of coloring or other modifications to make a product appear to be of a different
quality is also considered as false advertising; 

For example, some companies will use photo enhancement software to enhance the
actual appearance of their product so that the consumers will buy them.

 Misleading illustrations or photographs and other factors;

What is the Impact of the Deceptive Advertising to the Customer and Organisations?

Script:

Apart from its misleading behaviour,  the impact of the deceptive advertising is very harmful
to the customer and business too. 

In the customer's aspects, the impact of deceptive advertising can lead to a consumers poor
buying decision concerning those products and services.
They may also end up wasting a lot of money on something that doesn't meet their needs and
expectations or solve their problems. 

Besides that, they might also use the product without knowing the negative side effects that
comes with the product too.

On the other hand, companies who use deceptive advertising to promote their products and
services can be damaging to the business too can be charged with legal penalties and
consequences such as:
 Legal damages for losses caused to a consumer
 Refund or exchange of a product
 Product recall (especially in cases where there is a defect with the product)
 Injunction to have the ad removed or replaced and;
 Civil fines

These types of claims are handled and investigated by the Federal Trade Commission (FTC)
Due to this, the company could end up losing  a lot of money due to a charged fine by FTC
and the trust of their customers for false advertising. 
For example, in 2010, Dannon was ordered to pay about $45 million in damages to plaintiffs
in a class action lawsuit alleging false claims about two yogurt products, Activia and
DanActive. Advertisements for the products claimed the products had “clinically proven”
health benefits. The company charged more for the products, and consumers were induced to
purchase the products, based on these claims. In addition to monetary damages, the court
ordered Dannon to modify its advertising. * You can explain in the simplest way however
you want
 
How to overcome deceptive advertising ?

Script:

To overcome deceptive advertising, it is important to encourage consumers to report any

unethical marketing behavior to the consumer societies or any government
organizations concerned about consumer affairs. 

Do ensure strict adherence to protect specifications determined by government

organizations, and to control that on an ongoing basis.  

It is also important to make consumers aware of marketing deception, and increase

their abilities to recognize the unethical marketing behavior of which they may
experience, and improve awareness of marketing practitioners about consequences
of deceiving consumers.

Besides that, marketers can also use customer value proposition theory to tell a customer the
number one reason why a product or service is best suited for that particular customer
through any advertisements materials as it stands as a promise by a company to a customer.

Therefore, customer can read or hear the value proposition and understand the delivered
value without needing further explanation.
In order to create a good Customer Value Proposition, companies need to obtain a good
customer insight from their target audience.

Last but not least, marketers can also use the consumer behaviour theory to study how a
group of customers select, buy, use, and dispose ideas towards the products or services in
order to satisfy their needs and wants (Chand, n.d.).
 
 
 
If the marketer successful to understand the consumer behavior according to the
consumer buying decision process towards the goods or services, then it may successful for
selling its products or services.
 
As a result, by using the value proposition and consumer behaviour, advertisers will be able
to create more effective advertising for later campaigns and better targeting and message to
the consumer.

Hence, the occurrence of deceptive advertisements can also be reduced.

That’s all from us! I hope this video helps you to learn and understand more about deceptive
advertising. On a side note, please share your stories if you have been a victim in deceptive
advertising by commenting in the section below.

References
 
Al-Zyadat, A., n.d. Consumers Attitudes Toward Marketing Deception In Advertisement: An
Empirical Study In Irbid City- Jordan. [ebook] Dubai, United Arab Emirates: Scholars
Middle East Publishers, p.147. Available at:
<http://scholarsmepub.com/wp-content/uploads/2017/04/SJBMS-23A143-148.pdf>
[Accessed 12 November 2020].
 
Federal Trade Commission. n.d. Advertising And Marketing On The Internet: Rules Of The
Road. [online] Available at:
<https://www.ftc.gov/tips-advice/business-center/guidance/advertising-marketing-internet-
rules-road> [Accessed 12 November 2020].
 
LAKE, L., 2019. How To Develop Your Value Proposition So It Connects On A Gut Level.
[online] The Balance Small Business. Available at:
<https://www.thebalancesmb.com/develop-your-value-proposition-2295755> [Accessed 10
November 2020].
 
Nagler, M.G., 1993. Rather bait than switch: Deceptive advertising with bounded consumer
rationality. Journal of Public Economics, 51(3), pp.359-378.
 
 
Payne, A., Frow, P. and Eggert, A., 2017. The customer value proposition: evolution,
development, and application in marketing. Journal of the Academy of Marketing Science,
45(4), pp.467-489.
 
Qazzafi, S.H.E.I.K.H., 2019. Consumer Buying Decision Process Toward Products.
International Journal of Scientific Research and Engineering Development, 2 (5), pp.130-
134.
 
Rivera, J., 2018. What Is Deceptive Advertising?. [online] LegalMatch Law Library.
Available at: <https://www.legalmatch.com/law-library/article/what-is-deceptive-
advertising.html> [Accessed 12 November 2020]
 
Schiffman, L.G. and Kanuk, L.L., 2009. Consumer behavior. Harlow, England: Prentice
Hall.
 
TWIN, A., 2020. Value Proposition: Why Consumers Should Buy A Product Or Use A
Service. [online] Investopedia. Available at:
<https://www.investopedia.com/terms/v/valueproposition.asp#:~:text=A%20value
%20proposition%20is%20part%20of%20a%20company's%20overall%20marketing
%20strategy.&text=This%20statement%2C%20if%20worded%20compellingly,than
%20other%20similar%20offerings%20will.> [Accessed 10 November 2020].